GST 2.0 = Bullish for Indian Real Estate

• Two-slab reset (5% & 18% + 40% demerit) • Goes live Sept 22, 2025 • Here’s how it boosts RE growth

What Changed

Simpler Taxes, Wider Relief • Many FMCG & household items → 5% • White goods (AC/TV/DW) → 18% • EVs 5%, small cars 18%; big cars in 40%

Consumption Flywheel

Malls & High Streets Win • Cheaper baskets → more visits & higher tickets • Stronger weekend peaks • Reprice short leases, push %-rent

Auto Retail Tailwind

Mass + EV Momentum • Small cars @18%, EVs @5% = clarity • Expect higher qualified walk-ins • Plan test-drive loops & charging bays

Sticky Services

Insurance & Wellness as Anchors • Individual health/life GST-free • Gyms/salons/yoga at 5% • Curate long-tenure, service-led tenants

Industrial & Warehousing

Cash Unlocked, Faster Absorption • Inverted duty fixes (textiles, fertiliser inputs) • Smoother cash cycles for manufacturers • Boost to small-bay warehousing & SDF shells

Housing Read-Through

Easier Move-Ins, Quicker Rent-Ups • Appliances @18% + essentials @5% • Lower “all-in” setup cost • Speeds bookings and occupancy

Underwriting Gets Cleaner

Less Friction, Faster Go-Live • Fewer slab disputes • More predictable tenant P&L • Shorter LOI→ Opening timelines

Price the Risks

Keep IRR Honest • Ensure visible pass-through to consumers • Watch insurer ITC adjustments • State revenue fine-tuning possible

Playbook

How to Deploy Capital Now • Double down on FMCG + value electronics • Back auto corridors with EV-ready frontages • Add wellness streets; scale small-bay industrial